AIG's ex-CEO to forego $22 million severance package: report
24 Sep 2008
Mumbai: Former chief executive of American International Group Inc, Robert Willumstad, has rejected a $22 million severance payment, the Wall Street Journal reported.
The report, citing sources familiar with the developments, said Willumstad decided to forego the severance since he was not able to execute the restructuring plan he had developed, the report said, quoting an e-mail to his successor Edward Liddy.
Robert Willumstad joined American International Group as chief executive after he left Ciyigroup.
Willumstad will lose his job at the helm of AIG in connection with the US government's rescue package for the giant insurer and will be replaced by Edward Liddy, a former chief executive of Allstate, the insurance company.
AIG received a two-year loan of $85 billion from the US Federal Reserve in a bailout plan allowing it to pay bills and sell assets with what the central bank called the ''least possible'' disruption to the economy.
The US government will take an equity stake of 79.9 per cent in AIG, which has about $1.05 trillion worth of assets and employs 116,000 people in more than 100 countries.
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